“In 2010 we launched new products, rolled-out our traffic information
service and broadened the customer base of our company. We grew revenue
and earnings per share and generated €145 million of cash.

The size of the PND market declined compared to the previous year,
though by increasing our market share and because of a more limited
decline in selling prices, our Consumer business proved to be a
resilient revenue base for the company. Our Automotive business
delivered rapid growth (52% y.o.y.) by deepening existing and adding new
partnerships. Our Business Solutions unit grew strongly and our content
Licensing business successfully focused on the expanding internet and
wireless market.

Overall I am pleased with the performance of the company in 2010. In
2011 we will accelerate the development of the technologies which will
deliver the user experience expected by our customers of tomorrow.”

Outlook 2011

In 2011 we expect our Consumer business unit revenues to contract
modestly as a result of a decline in the size of the PND market and
limited price erosion, partly compensated by a strengthening of our
market share, geographical expansion and growth in Content and Services.
Automotive is expected to grow its existing partnerships, offer
real-time services and announce new contract wins. Licensing will widen
its product delivery capabilities to strengthen our position in the
government, enterprise and wireless markets. Business Solutions aims to
outperform the expected European fleet management market growth rate of
10 to 20 percent. Overall we expect revenue to be broadly in line with
2010.

TomTom has developed all of the core content, knowledge and technologies
needed to create the best user experience for car navigation. We will
invest in these assets to bring innovative products and services to the
market. 2011 will see an increase in expenditure, primarily in
development and commercial activities, as we evolve our technologies and
capabilities to expedite our growth in the Automotive and Business
Solutions segments. Together with more Content and Services in our
revenue mix and a reduced level of debt, this results in an expectation
of broadly flat earnings per share compared with 2010.

Operational review

Revenue split

(in € millions based on non-rounded figures)

Q4'10

Q4'09

y.o.y. change

Q3'10

q.o.q. change

Consumer

406

448

-9%

293

39%

Automotive*

55

36

52%

41

33%

Licensing**

39

35

11%

28

37%

Business Solutions

16

14

15%

13

26%

Hardware

418

449

-7%

284

47%

Content & Services

98

85

16%

90

8%

* includes automotive map sales

** third party location and navigation content licensing

In the quarter, TomTom’s PND market share in Europe (largest 16)
compared to the same period last year grew from 46% to 49%. The market
size in Europe was 3.5 million units (Q4 2009: 4.3 million; Q3 2010: 3.5
million). In North America our market share grew from 29% in the fourth
quarter last year to 32% this year. The North American market size was
6.5 million units (Q4 2009: 8.6 million; Q3 2010: 2.8 million).

The connected premium-range GO LIVE and the connected mid-range Via LIVE
were launched and were well received. The PND market size in the fourth
quarter holiday season was smaller than expected but revenues were
supported by growth in market share, an increase in selling prices and
by higher Content & Services revenue. It is part of TomTom Consumer's
strategy to move into the fast-growing sports and fitness market. At the
start of the new year we announced a partnership with Nike to deliver a
product for runners in the second quarter of 2011.

Our Automotive business unit announced significant expansions to
existing partnerships. The Blue&Me TomTom product was extended to the
Fiat Doblo, Fiat 500, Qubo and Iveco ECODAILY models. We will also
supply solutions for the Toyota Aygo, and together with FUJITSU TEN we
will supply an embedded PND for the Subaru Forester and Impreza in the
US.

We also announced a significant extension of our content licensing
agreement with MiTAC to include Magellan, the third largest PND brand in
the US, to add to the Mio and Navman brands. Agreement was reached with
smartphone manufacturer HTC to provide our maps for their location
application. This is an example of the goal of some of the handset
manufacturers to retain control of their navigation user experience. A
new partnership was announced with AutoNavi, China’s leading provider of
map content and navigation and location based solutions with a focus on
the automotive OEM market.

Business Solutions introduced a new premium model for the truck
navigation market, the PRO 7100 TRUCK, which expands the coverage of
access restrictions affecting large vehicles in Europe. In the quarter,
the number of WEBFLEET subscriptions grew by 12,000 to 134,000.

We take our intellectual property and the protection of our innovations
seriously. By the end of 2010, we had filed more than 3,450 individual
patent applications worldwide.

Financial review

Revenue

Revenue for the group was €516 million for the quarter, a decrease of 3%
compared to the same quarter last year (Q4 2009: €533 million) and an
increase of 38% sequentially (Q3 2010: €375 million). Year on year, the
decline in revenue for Consumer was partially offset by an increase in
revenue in the other three business units, further broadening the
company’s revenue base. Sequentially all four business units showed
growth with the largest contribution coming from our Consumer business
unit.

The revenue of the Consumer business unit over the past quarter amounted
to €406 million which is a €42 million decrease compared to the same
quarter of last year (Q4 2009: €448 million). The decrease is explained
by year on year lower sales in the holiday season especially around
Black Friday in the US. Sequentially Consumer revenue increased by 39%
(Q3 2010: €293 million) driven by higher unit sales and increased
Content & Services revenue.

Automotive revenue, which includes map and content sales to automotive
companies and their suppliers, grew by €19 million or 52% to €55 million
compared to the same quarter last year (Q4 2009: €36 million).
Sequentially revenue increased by 33% (Q3 2010: €41 million) due to the
seasonal pattern of production by our automotive partners, new products
coming on line and strong content sales in the US.

Licensing revenue increased by €4 million or 11% to €39 million compared
to the same quarter last year (Q4 2009: €35 million) and increased 37%
sequentially (Q3 2010: €28 million). The sales increase in the fourth
quarter is related to the seasonal effect in the portable navigation
segment and growth in the internet and wireless segment.

Business Solutions revenue grew year on year by €2.1 million or 15% to
€15.8 million (Q4 2009: €13.7 million) driven by additional hardware
sales as well as increased revenue from subscriptions. Sequentially
revenue increased by €3.3 million (Q3 2010: €12.5 million) on the back
of the continued growth of our subscriber base.

Hardware revenue for the quarter was €418 million across the group, a
decrease of 7% year on year (Q4 2009: €449 million) and an increase
compared to the third quarter of 47% (Q3 2010: €284 million).

Content & Services revenue was €98 million for the quarter compared to
€85 million in the fourth quarter of 2009, an increase of 16%. The main
contributor to the increase came from HD traffic service subscriptions.
Content & Services revenue increased by 8% to €98 million sequentially.
Content & Services revenue for the quarter represented 19% of total
revenue (Q4 2009: 16%; Q3 2010: 24%).

Gross margin

The gross margin for the group was 46% in the quarter. The gross margin
was flat compared to the same quarter last year and was down by 2
percentage points sequentially (Q4 2009: 46%; Q3 2010: 48%). The
sequential decrease was the result of the change in our product mix due
to the effects of the holiday season.

Operating expenses

In the quarter, total operating expenses amounted to €172 million, an
increase of 28% or €38 million compared to the fourth quarter of last
year (Q4 2009: €134 million). The increase in operating expenses was
mainly the result of higher marketing and R&D expenses. Sequentially
operating expenses increased by €49 million (Q3 2010: €123 million)
mainly because of higher marketing expenditure. Operating expenses as a
percentage of revenue for the quarter increased to 33% (Q4 2009: 25%)
and were stable compared to the previous quarter (Q3 2010: 33%).

R&D expenses for the quarter were €44 million, an increase of €7.7
million compared to the previous quarter (Q3 2010: €36 million) and an
increase of €7.6 million or 21% compared to the same quarter last year
(Q4 2009: €37 million).

Amortisation of technology and databases for the quarter was €23 million
(Q3 2010: €18 million, Q4 2009: €18 million). The increase is the result
of a one-off accelerated amortisation of tools and databases which are
no longer in use.

Marketing expenses for the quarter amounted to €48 million, a sequential
increase of 180% and a year on year increase of 86% (Q3 2010: €17
million; Q4 2009: €26 million). This sequential increase results from
the seasonal pattern of our business with higher marketing spend in the
fourth quarter in our Consumer Business Unit. In 2010 we significantly
increased fourth quarter expenditure compared to the previous year.
Total marketing expenses represented 9.4% of total revenue, an increase
of 4.8 percentage points sequentially and 4.5 percentage point increase
year on year (Q3 2010: 4.6%; Q4 2009: 4.9%).

Selling, general and administrative (SG&A) expenses for the quarter
amounted to €54 million, representing a sequential increase of 15%
compared to the previous quarter and a year on year increase of 4% (Q3
2010: €47 million; Q4 2009: €52 million). The sequential increase is
explained by a one-off gain in the previous quarter. SG&A expenses
represented 10% of current quarter group revenue, compared to 12% in the
previous quarter and 10% in the same quarter last year.

The operating result for the quarter was €65 million, a sequential
increase of €9.8 million or 18% (Q3 2010: €55 million) and a year on
year decrease of 42% (Q4 2009: €111 million) mainly because of the
higher operating costs. As the percentage of revenue, the operating
profit was 13%, a decrease of 8 percentage points compared with the same
quarter last year (Q4 2009: 21%) and down by 2 percentage points
sequentially (Q3 2010: 15%).

Financial results

In the quarter we paid €6.1 million in interest on our €683 million term
loan and €174 million revolving credit facility. The amortisation of the
transaction costs related to the term loan and revolving credit facility
amounted to €1.8 million. In the quarter we repaid €85 million of term
debt. The total interest expense for the fourth quarter amounted to €8.1
million (Q4 2009: €11 million, Q3 2010: €10 million).

Due to the 2% appreciation of the US dollar against the Euro in the past
quarter we realised a gain of approximately €5 million in financial
income and expenses.

Tax

The income tax charge was €10.3 million in the fourth quarter (Q4 2009:
€21.9 million). The effective tax rate in the fourth quarter was 16.5%
(Q3 2010: 22.4%; Q4 2009: 23.2%). The low tax rate in the quarter was
influenced by the one-off impact of a transfer of a content database
from the US to the Netherlands.

Debt financing

As at 31 December 2010, the carrying value of borrowings amounted to
€588 million (Q3 2010: €673 million; Q4 2009: €790 million). The
reduction compared to the third quarter is the result of the repayment
of €85 million at the end of the fourth quarter plus the amortised
transaction costs which are added back to the borrowings over the
lifetime of the borrowings. Excluding transaction costs, which are
netted against the borrowings, our outstanding borrowings at the end of
the quarter amounted to €598 million (Q3 2010: €683 million).

Net debt as at 31 December 2010 decreased to €294 million from €416
million at the end of the previous quarter and €442 million at the end
of the prior year. Net debt is the sum of the borrowings (€598 million),
less cash and cash equivalents at the end of the period (€306 million)
plus our financial lease commitments (€1.2 million). The net debt to
EBITDA ratio at year end was 0.98 times (YE 2009 1.31 times).

Balance sheet

As at 31 December 2010, accounts receivable plus other receivables had
increased by €65 million to €348 million compared to the previous
quarter (Q3 2010: €283 million; Q4 2009: €320 million). The inventory
level was €94 million, an increase of €14 million or 18% in comparison
to the previous quarter and an increase of €27 million or 41% compared
to the same quarter last year (Q3 2010: €80 million; Q4 2009: €67
million). Cash and cash equivalents at the end of the quarter were €306
million.

Total current liabilities increased by €276 million from €558 million in
Q3 2010 to €834 million in Q4 2010 (Q4 2009: €799 million). This was
caused mainly by the seasonal increase of rebate and revenue-related
accruals in our Consumer business and part of our borrowings moving from
non-current to current liabilities. At the end of the quarter we had
shareholders’ equity of €1,142 million up from €1,088 million at the
beginning of the quarter.

Cash flow

During the quarter, we recorded a net cash inflow from operations of
€141 million. This was mainly driven by the operating profit of €65
million and a €48 million decrease in working capital resulting from an
increase in current liabilities of €128 million partially offset by
higher inventories and receivables.

Cash flow used in investing activities during the quarter increased from
€16 million in the previous quarter to €22 million in Q4 2010 (Q4 2009:
€32 million).

Cash flow used in financing activities amounted to €84 million due to
the repayment of borrowings.

- END -

Consolidated income statements

(in € thousands)

Q4'10

(unaudited)

Q4'09

(unaudited)

FY'10

(audited)

FY'09

(audited)

Revenue

515,834

533,312

1,521,083

1,479,660

Cost of sales

279,251

288,568

777,018

748,624

Gross result

236,583

244,744

744,065

731,036

Research and development expenses

44,129

36,531

161,875

139,441

Amortisation of technology & databases

22,723

17,918

77,644

74,998

Marketing expenses

48,287

25,918

104,788

86,363

Selling, general and administrative expenses

53,778

51,909

199,941

198,779

Stock compensation expense

2,940

1,738

13,495

10,567

Total operating expenses

171,857

134,014

557,743

510,148

Operating result

64,726

110,730

186,322

220,888

Interest result

-8,074

-11,223

-35,064

-70,815

Other finance result

5,128

-5,722

-15,962

-41,202

Result of associates

707

733

-1,270

2,603

Result before tax

62,487

94,518

134,026

111,474

Income tax

-10,307

-21,883

-26,356

-25,088

Net result

52,180

72,635

107,670

86,386

Minority interests

475

-381

-98

-381

Net result attributed to the group

51,705

73,016

107,768

86,767

Basic number of shares (in millions)

221.7

221.7

221.7

184.0

Diluted number of shares (in millions)

224.0

223.6

222.0

184.9

EPS, € basic

0.23

0.33

0.49

0.47

EPS, € diluted

0.23

0.33

0.49

0.47

Consolidated balance sheet

(in € thousands)

31 Dec 2010

(audited)

31 Dec 2009

(audited)

Goodwill

854,713

854,713

Other intangible assets

946,263

986,472

Property, plant and equipment

38,977

42,904

Deferred tax assets

22,265

28,205

Investments in associates

7,720

7,683

Total non-current assets

1,869,938

1,919,977

Inventories

93,822

66,719

Trade receivables

305,821

294,024

Other receivables and prepayments

41,853

26,035

Other financial assets

5,724

10,602

Cash and cash equivalents

305,600

368,403

Total current assets

752,820

765,783

Total assets

2,622,758

2,685,760

Share capital

44,362

44,344

Share Premium

974,554

973,755

Other reserves

45,757

34,319

Stock compensation reserve

71,662

66,267

Accumulated deficit

-222

-106,209

Minority interests

5,416

5,094

Total equity

1,141,529

1,017,570

Borrowings

384,011

588,141

Provisions

51,051

57,847

Long-term liability

926

1,158

Deferred tax liability

211,014

222,129

Total non-current liabilities

647,002

869,275

Trade payables

218,419

201,176

Borrowings

203,586

201,387

Tax and social security

35,443

30,186

Provisions

58,237

56,503

Other liabilities and accruals

318,542

309,663

Total current liabilities

834,227

798,915

Total equity and liabilities

2,622,758

2,685,760

Consolidated statements of cash flows

(in € thousands)

Q4'10

(unaudited)

Q4'09

(unaudited)

FY'10

(audited)

FY'09

(audited)

Operating result

64,725

110,730

186,322

220,888

Financial (losses) / gains

-4,394

-3,890

-11,789

-19,741

Depreciation of PPE

3,396

5,951

14,863

20,416

Amortisation of intangible assets

27,105

19,805

94,235

85,920

Change to provisions

1,500

10,807

-5,180

-1,267

Change to stock compensation reserve

2,092

705

12,901

7,748

Changes in working capital:

Change in inventories

-13,965

12,876

-26,987

81,363

Change in receivables and prepayments

-65,138

-71,469

-27,617

-14,090

Change in current liabilities

127,531

119,214

28,545

48,536

Cash generated from operations

142,852

204,729

265,293

429,773

Interest received

278

966

977

2,843

Interest paid

-6,125

-8,735

-25,589

-66,480

Corporate income taxes paid

4,260

-10,813

-30,378

-25,798

Net cash flow from operating activities

141,265

186,147

210,303

340,338

Investments in intangible assets

-14,140

-14,562

-47,096

-56,991

Investments in property, plant and equipment

-8,155

-6,550

-17,866

-18,735

Acquisition of subsidiary

0

-11,369

0

-13,973

Total cash flow used in investing activities

-22,295

-32,481

-64,962

-89,699

Repayment of borrowings

-85,000

-210,000

-210,000

-622,048

Proceeds on issue of ordinary shares

815

74

817

415,941

Total cash flow from financing activities

-84,185

-209,926

-209,183

-206,107

Net (decrease) increase in cash and cash equivalents

34,785

-56,260

-63,842

44,532

Cash and cash equivalents at beginning of period

267,615

422,932

368,403

321,039

Exchange rate effect on cash balances held in foreign currencies

3,200

1,731

1,039

2,832

Cash and cash equivalents at end of period

305,600

368,403

305,600

368,403

Consolidated statement of changes in stockholders’ equity

(in € thousands)

(audited)

Share capital

Share premium

Other reserves

Accumulated deficit

Total

Minority interests

Total Equity

Balance as at 31 December 2009

44,344

973,755

100,586

-106,209

1,012,476

5,094

1,017,570

Comprehensive income

Result for the year

0

0

0

107,768

107,768

-98

107,670

Other comprehensive income

Translation differences

0

0

1,071

0

1,071

984

2,055

Transfer to legal reserves

0

0

7,956

-7,956

0

0

0

Cash flow hedge

0

0

2,411

0

2,411

0

2,411

Total other comprehensive income

0

0

11,438

-7,956

3,482

984

4,466

Total comprehensive income

0

0

11,438

99,812

111,250

886

112,136

Transactions with owners

Dividends to minority shareholders

0

0

0

0

0

-251

-251

Change in minority share

0

0

0

0

0

-313

-313

Stock compensation expense

0

0

5,640

0

5,640

0

5,640

Issue of share capital

18

799

-245

6,175

6,747

0

6,747

Balance as at 31 December 2010

44,362

974,554

117,419

-222

1,136,113

5,416

1,141,529

Accounting policies

Basis of accounting

The condensed financial information for the three-month period ended 31
December 2010 with related comparative information has been prepared
using accounting policies which are based on International Financial
Reporting Standards (IFRS). Accounting policies and methods of
computation followed in the condensed financial information, for the
period ended 31 December 2010, are the same as those followed in the
Financial Statements for the year ended 31 December 2010. Further
disclosures as required under IFRS for a complete set of consolidated
financial statements are not included in the condensed consolidated
financial statements. The Consolidated and Company Financial Statements
for TomTom NV for the year ended 31 December 2010 have been prepared and
audited but are not yet published.

Audio webcast fourth quarter 2010 results

The information for our fourth quarter results audio webcast is as
follows:

Founded in 1991, TomTom (AEX:TOM2) is the world’s leading supplier of
location and navigation products and services focused on providing all
drivers with the world’s best navigation experience. Headquartered in
Amsterdam, TomTom has 3,500 employees and sells its products in over 40
countries.

This document contains certain forward-looking statements relating to
the business, financial performance and results of the Company and the
industry in which it operates. These statements are based on the
Company’s current plans, estimates and projections, as well as its
expectations of external conditions and events. In particular the words
“expect”, “anticipate”, “estimate”, “may”, “should”, “believe” and
similar expressions are intended to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those suggested in the
forward-looking statements. These include, but are not limited to: the
level of consumer acceptance of existing and new and upgraded products
and services; the growth of overall market demand for the Company’s
products or for personal navigation products generally; the Company’s
ability to sustain and effectively manage its recent rapid growth and
its relations with third party suppliers, and its ability to accurately
forecast the volume and timing of sales. Additional presently unknown
factors could also cause future results to differ materially from those
in the forward-looking statements.